SEBI approves Wipro’s proposal to meet minimum public shareholding requirement

10 May 2013

Wipro has received SEBI’s approval whereby the regulator has approved the company’s proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an ‘Irrevocable Independent Trust’ with Trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. JM Financial acted as the advisor in this matter.

The Irrevocable Independent Trust shall be categorized as public shareholding for the purpose of the minimum public shareholding criteria of 25% specified under the Securities Contract (Regulation) Rules, 1957 and clause 40A of the Listing Agreement.

Wipro and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the diversified business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the Irrevocable Independent Trust and the Trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement.

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